Category Archives: Procurement Strategy & Planning

I’ve been giving quite a bit of thought recently to the impact of the circular economy on procurement. I also recently traded ideas with Tradeshift’s Christian Lanng on a Spend Matters webinar. Christian shared his take on the topic recently on Procurement Leaders blog, as well, which included a number of steps organizations must make from a procurement and A/P perspective as they march down the circular economy path. I’ll share a few of these below as well as my own commentary on them.

Earlier today, Spend Matters PRO published a detailed company and geographic update on IQNavigator, IQNavigator: From Strength to Strength – 2015 Company and Solution Outlook. This was the first research brief in a series providing an updated look at one of the top 3 VMS providers by volume and growth (Fieldglass, Beeline and IQNavigator together control the majority of the VMS market).
Once a tactical tool to manage compliance and basic workflow for contingent labor, the humble VMS is growing into a full-fledged source-to-pay suite for the broader services procurement market. But the VMS is an atypical relative to other procurement technologies for a number of reasons.

I spoke earlier this month at a half-day workshop event organized by Oracle and Enrich. The topic was “Future-Proof Procurement – what does the future-proof structure and strategy look like?” In particular, my session looked at the issues around how we structure the procurement function, particularly in large, complex organizations, and how that relates to strategy, culture and operating model. Why does the structure of procurement matter? And how do you design an appropriate structure that aligns with the wider organizational strategy, culture and goals? We answer these questions.

Procurement has increasing access to multiple levels of insider information. And just as we have seen enforcement impacting procurement and supply chain activities centered on FCPA compliance, it is likely an increasing set of activities tied to potential information leaks in the capital markets area will come under more scrutiny as well. In the first installment of this Spend Matters PRO research brief examining the potential for insider trading based on procurement information, authored by Thomas Kase, vice president of research, we covered lessons from other areas of the business as well as introducing the types of insider information that could be acted on by those inside the company or shared with external hedge funds or other parties. In this installment, we explore what you need to know about the potential for procurement and insider trading based on increasing data availability within procurement and supply chain organizations and key action steps you can take to prevent breeches.

The ongoing logistical logjam at the West Coast ports is still not resolved. The situation is impacting small and large businesses across the US as well as workers that rely on imports and exports from the ports. How could procurement have helped this situation? Spend Matters analyzes the issue and offers ways procurement can step in.

Have you considered the potential for insider trading violations and the ensuing lawsuits that could arise from access to procurement information? Perhaps this hasn't even entered your mind. With increasing data availability (spend data, supplier risk/management information, demand data) at the fingertips of procurement professionals and others in the organization, the opportunity to access information that could be used to provide an "advantage" in the capital markets has never been greater. Traditionally, such information (if available at all) was available solely to company “insiders” who could only trade within certain windows (and with other restrictions placed on them). In this multi-part Spend Matters PRO analysis, Spend Matters Vice President of Research Thomas Kase explores the growing potential of procurement-related information to create the opportunity for insider trading information.

My colleague Peter Smith penned a great article earlier this week on what procurement can learn from Russell Wilson and the Seattle Seahawks and their amazing come-from-behind win against the Green Bay Packers. The Seahawks will face the New England Patriots in the Super Bowl XLIX – what should be a terrific game. As I write this article from my home near Boston, I thought it’d be good to provide another perspective– this time from the Patriot’s point of view. I know: big eye roll from fans of the other 31 teams and the all Patriot’s haters. Don’t attach too much of your ego to any team, it’s just a game right? Rather, let’s learn from one game and apply it to another, namely the Great Game of Procurement.

Spend Matters welcomes this guest post by Mayank Saxena from GEP. The Christmas and New Year holidays couldn’t have come at a better time for me – reason being the hectic Christmas shopping we had to do right before the annual shutdown. Getting into December, we realized that there was quite some money that needed to be spent before the end of the year and very little time to do so! Although our sourcing process is very streamlined and our suppliers and business stakeholders can handle quick turnarounds, there was one key thing that dawned on us. I will summarize our realization in one of the most oft repeated statements of the season: “How I wish I could get my hands on the RFP that we did for this item, back in 2011!”

Our next 2015 prediction: Selling Fear. No, we’re not talking about some spooky Halloween-centric story. Nor are we bringing up something really freaky like the decline of procurement’s influence, charter and budget (scary enough – and somewhat true – in far too many organizations already). Rather, we suggest that procurement should focus on selling fear!

Spend Matters welcomes this guest post from Vroozi. When you work for a national hotel chain, the country may seem just a little bit smaller. Many of the decision-makers at these organizations are used to checking in from the road, though they are certainly afforded all of the finer amenities that come with a mobile lifestyle. With mobile procurement, professionals from all industries can feel that same sense of nomadic comfort.

One of the top trends in DHL’s Global Connectedness Index is a movement toward greater connectivity between countries, reversing trends from prior years. The authors note, for example, that “global connectedness started to deepen again in 2013 after its recovery stalled in 2012.” Yet the rise of interconnectivity, as measured by trade, is still tepid.

Demand for full medical protective suits is high as the Ebola epidemic spreads in Africa and threatens to reach other parts of the globe. As a consequence, supplies of the suits are struggling to keep up. To make the situation even more difficult, there are only a small number of companies that actually manufacture the types of protective suits involved. These suppliers are increasing production (some by as much as three times normal levels), but meeting the actual demand is still proving to be difficult.